December 17, 2020 | 7:48 pm Font Size
AAA
THE Securities and Exchange Commission (SEC) has granted property firms more time to implement an accounting standard governing the treatment of borrowing costs, citing the need to provide relief to the industry during the financial crisis.
In a memorandum circular on its website, the SEC said the extension applies to accounting treatments raised by the Philippine Interpretation Committee and the International Financial Reporting Standards Interpretations Committee concerning Over Time Transfer of Constructed Goods.
The accounting treatment of Over Time Transfer of Constructed Goods is governed by International Accounting Standard (IAS) 23 – Borrowing Costs. IAS 23 lays down how to account for borrowing costs directly incurred in building “qualifying assets” those that take a substantial amount of time to build.